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Friday 14 March 2014
Sean Kelly Sentenced to Five Years in Prison for MethRead the Press Release
The United States Attorney's Office announced that SEAN MICHAEL KELLY, 37, of Columbia Falls, was sentenced to 63 months in prison followed by 5 years supervised release by Senior U.S. District Judge Donald Molloy on March 14, 2014. In December 2013, the defendant pled guilty to conspiracy to distribute methamphetamine.
Assistant U.S. Attorney Tara Elliot told the Court in an Offer of Proof that Northwest Drug Task Force Agents received information from a confidential source that Kelly was actively involved with the distribution of dangerous drugs and made daily rounds throughout the valley to resupply people that are selling drugs for him.
Agents obtained a search warrant to attach a GPS tracking device to the vehicle used by defendant Kelly and followed the vehicle between Idaho and Montana by use of the GPS between December 6, 2012 and January 3, 2013. On January 3, 2013 Deputies observed the
Chevrolet pickup traveling on Hwy 83. The vehicle had a headlight out and a traffic stop was conducted on the vehicle. The driver and sole occupant of the vehicle was defendant Kelly. Kelly had an active warrant for his arrest and was detained on this warrant. The vehicle was then towed to a Flathead County secure storage facility in anticipation of a search warrant.
On January 7, 2013, Agents applied for and received a Montana State District Court search warrant for the 2002 Chevrolet Pickup truck. During the search NWDTF Agents located a black zippered case inside of a coat on the front passenger seat of the truck. Inside the case (often referred to as a kit) Agents found six syringes, a spoon, and a jewel bag containing 1 gram of methamphetamine. As agents searched further they found a package located within the tail-gate. The package was wrapped in several layers of plastic, coffee grounds, carbon paper and duct tape. The package contained approximately 423 grams of pure methamphetamine.
The term "pure methamphetamine" refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
Santa Clara Resident Sentenced to Forty Four Months in Prison for Burglary of Controlled SubstancesRead the Press Release
SAN FRANCISCO – Jerry Silveira was sentenced on March 12, 2014, forty four months in prison for burglary of controlled substances and possession with the intent to distribute controlled substances, announced United States Attorney Melinda Haag and Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick.
Silveira, 35, of Santa Clara, was indicted by a federal grand jury on June 13, 2013. He was charged with burglary of controlled substances in violation of 18 U.S.C. § 2118(b), possession with intent to distribute a Schedule II controlled substance in violation of 21 U.S.C. § 841(a), and possession with intent to distribute methamphetamine in violation of 21 U.S.C. § 841(a).
Silveira pleaded guilty on November 12, 2013, to burglary of controlled substances and to possession with intent to distribute controlled substances. According to the plea agreement, Silveira admitted that on March 1, 2013, he entered the Palo Alto Medical Foundation pharmacy in Palo Alto, Calif. without permission, and stole approximately 5,737 pills from the pharmacy. He also admitted that the replacement value of the stolen pills to the pharmacy is $14,512.
The sentence was handed down by the Honorable William Alsup, United States District Court Judge, following the guilty plea. Judge Alsup also sentenced the defendant to a 3 year period of supervised release, and ordered him to pay ordered to pay $14,512 in restitution to the Palo Alto Medical Foundation. The defendant has been in federal custody since his initial appearance on June 24, 2013.
Chinhayi Coleman Cadet is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elizabeth Garcia. The prosecution is the result of a one month investigation by the Palo Alto Police Department and the Drug Enforcement Administration.
(Silveira indictment )
Ringleader of Identity Theft Ring and Accomplice Plead GuiltyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI), and Ric. L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce that Jennifer Robinson, 36, of West Palm Beach, and Elton Baker, 29, of Center Hill, pled guilty for their participation in a wide-ranging identity theft scheme.
Specifically, Robinson pled guilty to all counts in a superseding indictment, which included one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. ' 1349, twelve counts of wire fraud, in violation of 18 U.S.C. ' 1343, eleven counts of stealing government monies, in violation of 18 U.S.C. ' 641, twelve counts of aggravated identity theft, in violation of 18 U.S.C. ' 1028A, and, one count of unauthorized access device fraud, in violation of 18 U.S.C. ' 1029(a)(2). Elton Baker pled guilty to conspiracy to commit wire fraud, three counts of wire fraud, and one count of aggravated identity theft. At sentencing, the defendants face a maximum of ten years in prison for each count of conspiracy to commit wire fraud, wire fraud, theft of government funds, and unauthorized access device fraud; and, a mandatory term of two years in prison for the aggravated identity theft charge, to run consecutively to any other sentence.
Sentencing is scheduled for May 23, 2014 at 2:00 p.m. before U.S. District Judge Kenneth Marra.
The scheme involved, in part, stealing the identities of patients at a medical facility in central Florida. Those identities were then used to file fraudulent federal income tax returns in the patients’ names seeking fraudulent refunds, and obtaining fraudulent credit cards which were then used to make fraudulent purchases.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Palm Beach County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pierce County Man Sentenced to 14 Years in Prison for Plotting to Hire ‘Hit Man’ to Assassinate People in VietnamRead the Press Release
A 48-year-old University Place, Washington man was sentenced today in U.S. District Court in Seattle to 14 years in prison and five years of supervised release for Conspiracy to Kill Persons in a Foreign Country and Solicitation to Commit a Crime of Violence, announced U.S. Attorney Jenny A. Durkan. LONG VAN NGUYEN, pleaded guilty in September 2013, admitting that in 2012 he tried to pay to have various people in Vietnam killed. NGUYEN thought that he was hiring an assassin to carry out the murders when in fact he was dealing with undercover federal law enforcement agents. At sentencing U.S. District Judge Robert S. Lasnik said, “he committed two very serious offenses. . . you cannot dismiss this as mere puffery.”
According to records in the case, in March 2012 NGUYEN solicited an undercover Homeland Security Investigations (HSI) special agent to assassinate people in Vietnam. NGUYEN had told others that he had sent $100,000 to a nephew in Vietnam, instructing him to spend only the interest earned by the money. Instead, the nephew spent all the money so NGUYEN wanted him killed. The undercover agent told NGUYEN he had associates in Vietnam who could do the killings. NGUYEN agreed to a plan whereby his nephew ‘Bon’ would show the ‘assassins’ who NGUYEN wanted killed. After identifying two proposed victims, NGUYEN then instructed the undercover agent that he wanted the nephew ‘Bon’ killed as well. An undercover FBI agent posed as a possible assassin in the scheme. NGUYEN paid the undercover FBI agent additional money for the hit, and added four more people to the list of those he wanted killed. He provided pictures to the undercover HSI special agent of the four he wanted killed. NGUYEN was arrested on July 7, 2012 and has been in custody ever since.
“Nguyen was adamant he wanted these people dead,” said Brad Bench special agent in charge of HSI Seattle. “HSI and Vietnamese authorities had to act fast to save lives. HSI has more than 70 international offices, and we work closely with foreign law enforcement to bring criminals such as Nguyen to justice.”
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), with assistance from the FBI and Vietnam Ministry of Public Security. The case was prosecuted by Assistant United States Attorneys Jill Otake and Ye-Ting Woo.
Philadelphia Man Charged with Stealing Dead Mother's BenefitsRead the Press Release
Donald Sheppard, 57, of Philadelphia, PA, was charged today by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, after Sheppard’s mother died in December 2001, Sheppard improperly received and converted to his own use the Retirement and Suvivor’s Insurance (RSI) benefit payments that were intended for her. He collected these payments from early 2002 until the benefits were suspended in or about March 2005.
It is further alleged that between May 2003 and August 2012, Sheppard improperly received and converted to his own use the SSI benefits for individual J.B. and, between December 2005 and August 2012, improperly received and converted to his own use the SSI benefits for individual A.M. Sheppard allegedly defrauded the Social Security Administration of approximately $162,153.85.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a three-year period of supervised release, a $250,000 fine, a $100 special assessment, and the imposition of full restitution.
The case was investigated by the Social Security Administration-Office of the Inspector General and Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Patrick J. Murray.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Charged with Stealing Dead Mother's BenefitsRead the Press Release
Donald Sheppard, 57, of Philadelphia, PA, was charged today by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, after Sheppard’s mother died in December 2001, Sheppard improperly received and converted to his own use the Retirement and Suvivor’s Insurance (RSI) benefit payments that were intended for her. He collected these payments from early 2002 until the benefits were suspended in or about March 2005.
It is further alleged that between May 2003 and August 2012, Sheppard improperly received and converted to his own use the SSI benefits for individual J.B. and, between December 2005 and August 2012, improperly received and converted to his own use the SSI benefits for individual A.M. Sheppard allegedly defrauded the Social Security Administration of approximately $162,153.85.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a three-year period of supervised release, a $250,000 fine, a $100 special assessment, and the imposition of full restitution.
The case was investigated by the Social Security Administration-Office of the Inspector General and Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Patrick J. Murray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Patricia Ann Halcomb-Segna Sentenced in U.S. District CourtRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Billings, on March 5, 2014, before Senior U.S. District Judge Donald W. Molloy, PATRICIA ANN HALCOMB-SEGNA, 44, of Billings, Montana, was sentenced to a term of:
Prison: 110 months
Special Assessment: $ 100
Restitution: N/A
Supervised Release: 5 years
According to an Offer of Proof filed by Assistant U.S. Attorney Brendan McCarthy, in July of 2012, members of the Eastern Montana HIDTA were investigating Halcomb-Segna for the sale of methamphetamine in the Billings area. After a search warrant was conducted at her residence, Halcomb-Segna told law enforcement that she first began obtaining methamphetamine from R.F. in April of 2011. She would receive over one ounce a week from R.F. In May of 2011, she also transported methamphetamine to Cut Bank, Montana for D.T. She made four or five trips to Cut Bank. In January of 2012, she began obtaining approximately an eighth on ounce of methamphetamine on ten different occasions from K.H. In May or June of 2011, the defendant began obtaining larger quantities-an eighth to a quarter ounce of methamphetamine-from J.W. and T.E.
The defendant estimated that she distributed at least a quarter ounce of methamphetamine each week for the two months prior to July of 2012. She also stated that prior to that time and starting in 2011, she distributed smaller quantities of methamphetamine.
Orlando Man Arraigned on Charges of Threatening to Kill the President of the United States and Other Federal OffensesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that today Jason Lynn Gay (40, Orlando) was arraigned in federal court on an indictment charging him with one count of threatening a federal official, one count of making threats against the President of the United States, and one count of mailing a threatening communication. If convicted on all counts, Gay faces up to 25 years in prison.
According to the indictment, Gay threatened to assault and murder an agent of the Federal Bureau of Investigation and threatened to take the life of and inflict bodily harm upon the President of the United States of America. He made these threats in a communication that he mailed to the U.S. Courthouse in Orlando. Gay also threatened to “blow up” the federal courthouse in the same mailed communication.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service. It will be prosecuted by Assistant United States Attorney Andrew C. Searle.
Operation Speed Bump Press ConferenceRead the Press Release
WHEN: Monday, March 17, 2014 at 2:00 pm WHERE: Terry Sanford Federal Building
310 New Bern Avenue
Room 158
Raleigh, NC 27601-1461 Re: Operation Speed Bump Press ConferenceRALEIGH – The United States Attorney’s Office announces a press conference to discuss the Organized Crime Drug Enforcement Task Force (OCDETF) Operation Speed Bump. The following dignitaries are scheduled to join the staff of the U.S. Attorney’s Office who prosecuted the cases: Sheriff Steve Bizzell, Johnston County; Sheriff Jimmy Thornton, Sampson County; a representative of the Wayne County Sheriff’s Office; North Carolina Attorney General Roy Cooper, and Director Greg McLeod, NC State Bureau of Investigations.
Credentialed members of the media are invited to attend. For additional information please e-mail Don Connelly at [email protected].
Ocoee Man Arrested for Distribution and Possession of Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Shawn Williams (41, Ocoee) was arrested yesterday for the distribution and possession of child pornography. Williams made his initial appearance today on a criminal complaint and is currently detained. If convicted, he faces a maximum penalty of 20 years in federal prison on each count.
According to the criminal complaint, Williams responded to a sexually explicit Craigslist ad and began online correspondence with an Orlando man. The two men discussed their mutual interest in child pornography and attempted to make arrangements to meet, in person, for a sexual rendezvous. Williams used his cellular telephone to send the Orlando man several images of child pornography and they again discussed meeting to share their collections of child pornography. During their conversations, the Orlando man told Williams that he had a one year-old child. Williams then asked the man to send him “baby pics” and “adult with baby pics.” Agents arrested Williams at his home on March 13, 2014.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Joseph M. Schuster.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Non-Indian Man from Chama Pleads Guilty to Assaulting Jicarilla Apache WomanRead the Press Release
ALBUQUERQUE – Gabriel Armas, 30, pleaded guilty on March 14, 2014 to a misdemeanor information charging him with an assault offense under a plea agreement with the U.S. Attorney’s Office.
Armas, a non-Indian man from Chama, N.M., entered his guilty plea to an information alleging that he threatened to physically harm a Jicarilla Apache woman on May 12, 2012, in a location within the Jicarilla Apache Nation. In his plea agreement, Armas admitted assaulting the victim by placing her in fear that she was in danger of an immediate battery.
At sentencing, Armas faces a maximum penalty of a year in prison. Armas was released under pretrial services supervision pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Jicarilla Apache Tribal Police Department and is being prosecuted by Special Assistant U.S. Attorney David Adams. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Nicholasville Woman Found Guilty of Social Security Fraud, Bankruptcy Fraud, and Other ChargesRead the Press Release
Defendant defrauded federal agency and filed for bankruptcy despite owning millions of dollars in assets
LEXINGTON, KY. - A federal jury has found a Nicholasville woman guilty of defrauding the Social Security Administration (SSA), for approximately a decade, and fraudulently filing for bankruptcy, among other charges.
On Thursday evening, a jury convicted 51-year-old Sheryl Bruner of one count each of theft of government money, failure to disclose assets, and bankruptcy fraud. She was also convicted of ten counts of money laundering and two counts of making false statements. The jury returned the verdicts after approximately two and a half hours of deliberation, following four days of trial.
The evidence at trial established that, from 2003 until 2013, Bruner fraudulently claimed that she was disabled and had no funds or source of income, in order to qualify for financial assistance from the Supplemental Security Income (SSI) program. SSI is an income assistance program designed to provide financial assistance to elderly and disabled individuals who meet the program’s eligibility requirements. Bruner failed to disclose, and concealed from the SSA, that she owned multiple companies, which collectively earned millions of dollars during the time she was receiving financial assistance. Bruner worked primarily as a Medicaid service provider.
The evidence also established that, on May 16, 2013, Bruner filed for bankruptcy, despite the fact that she had more than a million dollars in assets. Bruner had tried to hide the amount of cash she had on hand, the bank and trust accounts she maintained or controlled, and vehicles and real estate she owned.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky andThomas Caul was recently selected as the Special Agent-in-Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations for the Atlanta Field Division.
The investigation was conducted by the Social Security Administration, Office of the Inspector General, Office of Investigations. Assistant U.S. Attorney Ken Taylor prosecuted the case on behalf of the federal government.
Bruner is scheduled to appear for sentencing in June 2014. The money laundering offenses carry a maximum of 20 years in prison, the theft of government property offense carries a maximum of 10 years, and the other offenses each carry a maximum penalty of five years. However, any sentence would be imposed by the Court, after consideration of the United States Sentencing Guidelines and the federal statutes governing the imposition of sentences.
New York Man Sentenced in Manhattan Federal Court to 61 Months in Prison for Fraudulent Investment SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that S. GEORGE MILTER was sentenced today in Manhattan federal court to 61 months in prison for participating in an investment scheme that defrauded foreign investors out of nearly $1 million. As part of the scheme, investors were lured with false promises that their funds would be safely invested in the U.S. financial markets through a legitimate broker-dealer. Instead, the money was misappropriated, used to pay certain expenses, and transferred to other entities and individuals, including MILTER and his family. MILTER pled guilty in November 2013 to one count of conspiracy to commit wire fraud and was sentenced by U.S. District Judge Katherine B. Forrest.
Manhattan United States Attorney Preet Bharara said: “Mr. Milter deliberately deceived investors, diverted their funds to members of his family and himself, and then lied when questions were asked. The sentence Judge Forrest imposed today ensures that Milter will spend substantial time behind bars paying for his fraud.”
According to the court filings and statements made in court:
MILTER held himself out as a President and Chief Executive Officer of Lempert Capital Management, Ltd., a corporation purportedly incorporated in the Cayman Islands, and Chief Executive Officer of Lempert Brothers, which was a registered broker-dealer. Starting in approximately 2005, foreign investors were lured into sending nearly $1 million to Lempert Capital’s purported management company Lempert Brothers under the pretense that those funds would be invested in the U.S. financial markets by Lempert Brothers To induce investors into wiring funds, among other false promises, MILTER told investors that the funds would be safeguarded, and that if the value of the funds dropped more than 20%, the money would be frozen and all remaining funds available for return to investors. In fact, the nearly $1 million of investor funds were misappropriated and diverted to, among other things, MILTER’s family and himself.
To keep the scheme going, MILTER sent fraudulent monthly account statements to the investors. These statements falsely reflected that the investors’ funds were invested and earning substantial income. When investors attempted to withdraw funds from their accounts, MILTER made additional false and fraudulent representations as to why the funds could not be returned when requested. For example, investors falsely were told that their money was illiquid because it had been invested in various companies that had not yet gone public.
In addition to the prison sentence of 61 months, Judge Forrest sentenced MILTER, 35, of New York, New York, to three years of supervised release and ordered him to pay a special assessment of $100. Judge Forrest also ordered restitution in the amount of $946,509, and forfeiture of the same amount, which amount represents the crime proceeds.
MILTER’s co-defendant Cliffe R. Bodden, 50, previously pled guilty and currently is serving his sentence of 74 months in prison.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecution.
Nashua Man Sentenced on Bank Robbery ChargeRead the Press Release
CONCORD, N.H. – Bradford Mullane, 32, of Nashua, was sentenced in United States District Court for the District of New Hampshire to 30 months in prison for unarmed bank robbery, announced United States Attorney John P. Kacavas.
Mullane walked into a TD Bank in Nashua, New Hampshire, on July 15, 2013, where he presented a handwritten note demanding money, and made off with more than $1,200 in stolen funds.
This prosecution arose from an investigation by the Nashua, New Hampshire Police Department. The case was prosecuted by Assistant United States Attorney Nick Abramson.
Muskogee Woman Sentenced to 70 Months for Drug ConspiracyRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that LINDA JEAN FARIES, age 31, of Muskogee, Oklahoma, was sentenced to 70 months imprisonment, followed by 5 years of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Section 846.
The charge arose from an investigation by the Muskogee Police Department and the Drug Enforcement Administration. The defendant was indicted in June, 2013 and pled guilty in July, 2013.
The Indictment alleged that beginning in or about November 2012, the exact date being unknown to the Grand Jury, and continuing until on or about April 12, 2013, in the Eastern District of Oklahoma, and elsewhere, the defendant, did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to knowingly and intentionally possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which she will serve her nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Mountain City Residents Sentenced for Conspiring to Manufacture MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – Four individuals involved in a methamphetamine conspiracy were sentenced on Mar. 12, 2014, by the Honorable J. Ronnie Greer, U.S. District Judge. Janet L. Bunting, 45, of Mountain City, Tenn., was sentenced to serve 46 months in federal prison followed by three years of supervised release. Heather M. Eller, 32, of Mountain City, Tenn., was sentenced to serve 92 months in federal prison followed by five years of supervised release. Debbie L. Snyder, 36, of Mountain City, Tenn., was sentenced to serve 60 months in federal prison, followed by four years of supervised release. Rachel M. Williams, 39, of Mountain City, Tenn., was sentenced to serve 62 months in federal prison followed by four years of supervised release. There is no parole in the federal system.
These individuals, along with 16 others were indicted in May 2013 for conspiring to manufacture methamphetamine and possessing equipment, chemicals, materials, and products to be used in the manufacture of methamphetamine. Seven others named in the indictment were also charged with distributing methamphetamine. All of those charged in this case have been adjudicated guilty and will be sentenced later this year.
The charges stemmed from a lengthy investigation spanning from August 2006 to May 2013 involving a conspiracy by these individuals to obtain pseudoephedrine and other products needed to manufacture methamphetamine in the Eastern District of Tennessee, Western District of North Carolina, and the Western District of Virginia. The pseudoephedrine and other products were then used to manufacture methamphetamine utilizing the “shake and bake” method. The methamphetamine produced was used and distributed in the Eastern District of Tennessee.
“Methamphetamine has had a devastating effect on communities in eastern Tennessee. Thanks to the collaborative efforts of so many law enforcement agencies, we have recently seen a reduction in the number of methamphetamine laboratories across the district. Our office is dedicated to combat methamphetamine related crimes and will continue to aggressively prosecute these offenses,” stated U.S. Attorney William C. Killian.
This investigation was a result of the collaborative efforts of the Johnson County Sheriff’s Office, 1st Judicial District Drug Task Force, the Tennessee Methamphetamine Task Force, and the Drug Enforcement Administration. Assistant U.S. Attorneys Suzanne Kerney-Quillen and Caryn Hebets represent the United States.
Mobile County Man Sentenced to 84 Months Incarceration Based on Illegal Possession of FirearmRead the Press Release
The United States Attorney, Kenyen Brown announces that Octavius Pickett, a 28 year old Mobile resident was sentenced today. The Honorable Kristi Dubose sentenced Pickett to 84 months incarceration followed by three (3) years of supervised release and a monetary assessment of $100. This sentence was based on Pickett’s illegal possession of a .38 caliber revolver while attempting to intimidate someone into giving Pickett money. Pickett was charged by Indictment in July 2013 and later pled guilty on December 19, 2013.
Special Agents of The Bureau of Alcohol Tobacco Firearms and Explosives and the Mobile, Alabama Police Department investigated the case and brought it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Mobile County Man Sentenced to 31 Months Incarceration Based on Possession of Stolen FirearmRead the Press Release
The United States Attorney, Kenyen Brown announces that Nicholas Sierke, a 25 year old Mobile resident was sentenced today. The Honorable Kristi Dubose sentenced Pickett to 31 months incarceration followed by three (3) years of supervised release and a monetary assessment of $100. This sentence was based on Sierke’s illegal possession of a Weatherby .270 rifle he stole during a burglary. Sierke was charged by Indictment in October 2013 and later pled guilty on December 19, 2013.
Special Agents of The Bureau of Alcohol Tobacco Firearms and Explosives and the Mobile, Alabama Police Department investigated the case and brought it to the U.S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Michele O’Brien.
Medical Clinic Owner and Other Patient Recruiters Sentenced for Roles in $8 Million Health Care Fraud SchemeRead the Press Release
Several patient recruiters, including a medical clinic owner, were sentenced today for their participation in a health care fraud scheme involving Flores Home Health Care Inc., a defunct home health care company.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Brian P. Martens of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Lerida Labrada, 59; Mayra Flores, 49; and German Martinez, 36, all of Miami, were sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida to serve 37 months, 24 months, and 24 months in prison, respectively. In addition to their prison terms, all of the defendants were sentenced to three years of supervised release and ordered to pay between $200,000 and $400,000 in restitution.
On Jan. 7, 2014, Labrada pleaded guilty to conspiracy to commit health care fraud, and Flores and Martinez pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks.
According to court documents, the defendants worked as patient recruiters for the owners and operators of Flores Home Health, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Labrada also owned and operated a Miami medical clinic that provided fraudulent prescriptions to patient recruiters and to the owners and operators of Flores Home Health.
The defendants would recruit patients for Flores Home Health and would solicit and receive kickbacks and bribes from the owners and operators of Flores Home Health in return for allowing the company to bill the Medicare program on behalf of the recruited Medicare patients. These Medicare beneficiaries were billed for home health care and therapy services that were not medically necessary and/or were not provided.
From approximately October 2009 through approximately June 2012, Flores Home Health was paid approximately $8 million by Medicare for fraudulent claims for home health services.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division's Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.govMedical Clinic Owner Sentenced for Role in Multiple Health Care Fraud Schemes Totaling over $20 MillionRead the Press Release
The owner and operator of a Miami medical clinic, Merfi Corp., was sentenced today to serve 108 months in prison for her participation in multiple health care fraud schemes.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Brian P. Martens of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Isabel Medina, 49, of Miami, was sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida. In addition to her prison term, Medina was also sentenced to serve three years of supervised release and was ordered to pay $8,437,393 in restitution.
On Jan. 7, 2014, Medina pleaded guilty before Judge Ungaro to conspiracy to commit health care fraud.
According to court documents, Medina was an owner and operator of Merfi Corp., a Miami medical clinic that employed physicians, physician assistants and other medical professionals who were authorized by law to dispense prescriptions for home health care services. Through Merfi Corp., Medina and her co-conspirators provided fraudulent home health and therapy prescriptions to the owners and operators of Flores Home Health Care Inc. and other home health care agencies, as well as to patient recruiters, in return for kickbacks and bribes.
Flores Home Health and these other home health care agencies purported to provide home health and therapy services to Medicare beneficiaries, but were in fact operated for the purpose of billing Medicare for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Medina has acknowledged that her involvement in fraudulent schemes at multiple home health care companies resulted in losses to the Medicare program exceeding $20 million.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.govMedical Clinic Owner Sentenced for Role in Multiple Health Care Fraud Schemes Totaling over $20 MillionRead the Press Release
The owner and operator of a Miami medical clinic, Merfi Corp., was sentenced today to serve 108 months in prison for her participation in multiple health care fraud schemes.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Brian P. Martens of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Isabel Medina, 49, of Miami, was sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida. In addition to her prison term, Medina was also sentenced to serve three years of supervised release and was ordered to pay $8,437,393 in restitution.
On Jan. 7, 2014, Medina pleaded guilty before Judge Ungaro to conspiracy to commit health care fraud.
According to court documents, Medina was an owner and operator of Merfi Corp., a Miami medical clinic that employed physicians, physician assistants and other medical professionals who were authorized by law to dispense prescriptions for home health care services. Through Merfi Corp., Medina and her co-conspirators provided fraudulent home health and therapy prescriptions to the owners and operators of Flores Home Health Care Inc. and other home health care agencies, as well as to patient recruiters, in return for kickbacks and bribes.
Flores Home Health and these other home health care agencies purported to provide home health and therapy services to Medicare beneficiaries, but were in fact operated for the purpose of billing Medicare for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Medina has acknowledged that her involvement in fraudulent schemes at multiple home health care companies resulted in losses to the Medicare program exceeding $20 million.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Medical Clinic Owner and Other Patient Recruiters Sentenced for Roles in $8 Million Health Care Fraud SchemeRead the Press Release
Several patient recruiters, including a medical clinic owner, were sentenced today for their participation in a health care fraud scheme involving Flores Home Health Care Inc., a defunct home health care company.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Brian P. Martens of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Lerida Labrada, 59; Mayra Flores, 49; and German Martinez, 36, all of Miami, were sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida to serve 37 months, 24 months, and 24 months in prison, respectively. In addition to their prison terms, all of the defendants were sentenced to three years of supervised release and ordered to pay between $200,000 and $400,000 in restitution.
On Jan. 7, 2014, Labrada pleaded guilty to conspiracy to commit health care fraud, and Flores and Martinez pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks.
According to court documents, the defendants worked as patient recruiters for the owners and operators of Flores Home Health, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Labrada also owned and operated a Miami medical clinic that provided fraudulent prescriptions to patient recruiters and to the owners and operators of Flores Home Health.
The defendants would recruit patients for Flores Home Health and would solicit and receive kickbacks and bribes from the owners and operators of Flores Home Health in return for allowing the company to bill the Medicare program on behalf of the recruited Medicare patients. These Medicare beneficiaries were billed for home health care and therapy services that were not medically necessary and/or were not provided.
From approximately October 2009 through approximately June 2012, Flores Home Health was paid approximately $8 million by Medicare for fraudulent claims for home health services.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division's Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Medical Clinic Biller Convicted in Medicare Part C Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Brian P. Martens, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Office of Investigations Miami Office, and Amy K. Parker, Assistant Special Agent in Charge, Office of Personnel Management, Office of Inspector General, announce that a federal jury found Cecilio Pelaez Delgado, 51, of Miami, guilty of ten counts of health care fraud, in violation of Title 18, United States Code, Section 1347, and conspiracy to commit the same, in violation of Title 18, United States Code, Section 1349. Sentencing is scheduled for June 13, 2014 before U.S. District Judge Robert N. Scola, Jr.
According to the indictment and evidence admitted at trial, Pelaez Delgado was employed by a medical clinic, Viton Therapy Medical Center Inc. (Viton Therapy), a Florida corporation. Viton Therapy was an authorized medical services provider with Blue Cross and Blue Shield of Florida (BCBS) and Cigna, and was eligible to receive reimbursement from the private insurance carriers for medical services rendered to policyholders.
The evidence at trial demonstrated that Cecilio Pelaez Delgado, through Viton Therapy and another related clinic, One Solution Therapy, submitted and caused the submission of approximately $2.5 million in false and fraudulent claims for expensive infusion and injection therapies to the two insurance carriers, and was paid over $400,000 of the submitted claims. The evidence further established that the clinics paid kickbacks and bribes to beneficiaries suffering from HIV to ensure that they would attend the clinics.
Mr. Ferrer commended the investigative efforts of the FBI, HHS-OIG, and the Office of Personnel Management, Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Massachusetts Man Sentenced on Drug ChargeRead the Press Release
CONCORD, N.H. – James Murphy, 30, of Massachusetts, was sentenced in United States District Court for the District of New Hampshire to 5years in prison for possession with the intent to distribute in excess of 28 grams of crack cocaine, announced United States Attorney John P. Kacavas.
On February 3, 2013, Murphy was pulled over on Interstate 95 near Spaulding, New Hampshire, for driving erratically and disobeying a police officer. A subsequent search of Murphy’s person resulted in the discovery of a substantial amount of crack cocaine, bagged for distribution.
This prosecution arose from an investigation by the Nashua, New Hampshire Police Department. The case was prosecuted by Assistant United States Attorney Nick Abramson.
Lower Brule Man Charged with Third Degree BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Third Degree Burglary.
James Short Bear, age 18, was indicted on March 11, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 13, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 2 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 10, 2014, Short Bear unlawfully entered and remained in an unoccupied structure, with the intent to commit the crime of larceny.
The charge is merely an accusation and Short Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Short Bear was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lincoln Man Sentenced for Receipt of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Kristopher C. Tibbs, 28, of Lincoln, Nebraska, was sentenced on March 14, in Lincoln, Nebraska to five and a half years in prison by United States District Judge John M. Gerrard for receipt of child pornography. After his release from prison, Tibbs will be required to serve a 5 year term of supervised release and be registered as a sex offender.
While conducting an operation in February of last year, investigators with the Lincoln Police Department were able to access child pornography images from computers that were using file sharing software publicly available on the Internet through Peer-to-Peer Network. On three occasions, investigators were able to make a direct connection to a specific computer which was sharing images of child pornography. Using computer programs, investigators were able to identify the IP address for that computer. The Internet service provider indicated that the IP address was assigned to Tibbs.
A search warrant was executed at Tibbs’ residence. When investigators examined Tibbs’ computer, they found digital images and over 170 videos depicting sexually explicit conduct of children under the age of 18.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.This case was investigated by the Lincoln Police Department.
Lackawanna Man Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Angelo Vazquez-Rodriguez, 31, of Lackawanna, N.Y., who was convicted of conspiracy to possess with intent to distribute 500 grams or more of cocaine, was sentenced to 60 months in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney John M. Alsup, who handled the case, stated that the defendant was the intended recipient of multiple kilograms of cocaine shipped from Puerto Rico. The cocaine was intercepted by law enforcement prior to delivery, refilled with sham material and allowed to be sent on to the defendant immediately prior to his arrest. On April 13, 2012, Vazquez-Rodriguez was arrested after he accepted delivery of a mail package, which he believed contained approximately two kilograms of cocaine. Officers also found a firearm with a defaced serial number at the scene of the delivery.
The sentencing is the culmination of an investigation by the U.S. Postal Inspection Service, under the direction of Acting Inspector-in-Charge Shelly Binkowski and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Lynch in Missoula on March 13, 2014 and entering pleas of Not Guilty were:
- RING FELEZITAS SMITH, a 25-year-old resident of Missoula, appeared on charges of possession of stolen firearms. If convicted of the charge contained in the indictment, SMITH faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. PACER Case Reference: 14-05
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Houston Area Pastor Heads to Prison for Investment Fraud SchemeRead the Press Release
HOUSTON - Samuel Ray Palasota, 53, has been ordered to federal prison following his convictions on multiple counts of mail and wire fraud, announced United States Attorney Kenneth Magidson. The Houston-area pastor was convicted of 21 counts of mail fraud and three counts of wire fraud in conjunction with an investment fraud ponzi scheme after three days of trial on Oct. 17, 2013.
Today, U.S. District Judge Ewing Werlein Jr. found the intended loss amount to be more than $1 million, because Palasota had attempted to cause the victim to sell her home and give him those funds in addition to the $650,000 in investment funds she had already sent him. As a result of the convictions and total intended loss, the court ordered he serve 71 months in federal prison to be immediately followed by a three-year-term of supervised release. Judge Werlein further ordered the forfeiture of two vehicles Palasota had purchased with proceeds of the fraud scheme - a Dodge Ram truck and a Hyundai Genesis sedan.
During trial, the victim of the fraud scheme testified that Palasota convinced her to invest in what he claimed was a real estate investment program. Palasota provided her with documentation of the so-called real estate investment that was to be run under his company name, “The Maker’s Resources.” The documents from Palasota, which were introduced at trial, stated she would receive a “guaranteed” 40 percent return on her principal annually if she provided Palasota with $650,000 to invest. The recently divorced mother with young children agreed to the investment program and, in September 2009, sent Palasota the requested investment funds.
At the hearing today, additional evidence was presented including religious-themed letters Palasota had written to the victim in order to lull her into complacency while she was “investing” her money with him.
Detailed bank records and financial charts were introduced at trial demonstrating Palasota invested none of the victim’s funds in real estate.
During the scheme, Palasota mailed and wired funds to the woman that he termed “returns on investment.” However, the financial records illustrated that the funds Palasota sent were just a small portion of the woman’s own investment principal, rather than the profits of a legitimate investment. She further testified that the alleged returns on her investment Palasota sent convinced her that the investment program was real and was successful.
The financial documents demonstrated that instead of investing in real estate, Palasota spent Rowland’s investment funds on luxury goods, such as cars, clothing, jewelry, computer equipment and furniture, among other items. The financial documentation showed that by late 2010, Palasota had spent all of the victim’s funds. Further, by that time, Palasota’s bank account balance was negative.
Palasota was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI. Assistant United States Attorneys Robert S. Johnson and Sharad Khandelwal prosecuted the case.
Hogsett Announces Sentencing of A Madison County Man on Child Pornography ChargesRead the Press Release
Prosecution represents more results in U.S. Attorney’s ongoing "Operation Community Watch"
INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today the sentencing of an Anderson resident, to 70 months (nearly 6 years) in federal prison by U.S. District Judge Tanya Walton Pratt. Richard Zachary Gardner, 23, admitted guilt to charges that he received child pornography on his personal computer. This prosecution comes as the U.S. Attorney’s Office has recommitted to Operation Community Watch, a federal effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“Through our Operation Community Watch initiative, we have joined with state and local partners to make clear that we will not tolerate child exploitation in Indiana,” Hogsett said. “With innovation and vigilance, we are unmasking these online predators and holding them accountable for their criminal activity.”
In August 2012, a detective with the Indiana State Police (ISP) was conducting undercover investigations into the internet sharing of child pornography. The ISP detective downloaded files from a computer that he later learned to be Gardner’s computer. The files downloaded by the detective contained images of child pornography.
On November 26, 2012, detectives with the Indiana State Police and Special Agents with the Department of Homeland Security, Homeland Security Investigations, went to Gardner’s residence in Anderson, and were granted consent to enter and search the residence. Law enforcement located a laptop computer inside the residence. A forensic investigation has revealed hundreds of videos and images of child pornography on the laptop including depictions of sexual abuse against children younger than age twelve and sadistic and masochistic conduct. Gardner admitted to downloading and receiving the images of child pornography located on the laptop.
According to Assistant U.S. Attorney MaryAnn T. Mindrum, who prosecuted the case for the government, Gardner was also sentenced to ten (10) years of supervised release at the end of his prison term, and must comply with state and federal requirements as a registered sexual offender.
This arrest comes one year after Hogsett announced a comprehensive crackdown on child exploitation in Indiana. In 2013, he launched "Operation Community Watch," which has allowed prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials. In this case, those efforts were facilitated by the Indiana State Police Department and the Department of Homeland Security, Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Hogsett Announces Landmark Decision That Protects Victims of Domestic ViolenceRead the Press Release
Seventh Circuit rules that certain violations of Indiana’s Domestic Battery Statute qualify as a
“Violent Felony” Under the Armed Career Criminal ActINDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today the United States Court of Appeals for the Seventh Circuit’s decision in United States v. Joseph Johnson recently affirmed that certain violations of Indiana’s domestic battery statute, I.C. § 35-42-2-1.3, qualify as a “violent felony” under the Federal Armed Career Criminal Act, 18 U.S.C. § 924(e)(2)(B). This decision resolves a long-standing debate whether domestic battery in the presence of a child under the age of 16 qualifies as a “violent felony.” As such, violators face significantly stiffer penalties than they would otherwise face.
“No relationship deserves the use or threat of physical violence, said Hogsett. “This court decision adds tools to our prosecution strategies to help keep victims safe from their attackers.”
The Federal Armed Career Criminal Act punishes an individual who possesses a firearm and has at least three prior violent felony convictions with a fifteen year mandatory minimum sentence of imprisonment. Prior to this decision in Johnson, there was no precedent stating that certain violations of Indiana’s domestic battery statute are considered “violent felonies” under the Act.
On September 12, 2013, Joseph Johnson, age 35, Indianapolis, Indiana, was sentenced by the Honorable William T. Lawrence, United States District Court Judge, to fifteen years imprisonment for possessing a firearm by convicted felon. Johnson has an extensive criminal history in Marion County, including violent felony convictions for robbery, resisting law enforcement, and domestic battery in the presence of a child under the age of sixteen. Johnson’s domestic battery conviction was particularly violent.
As described by the United States Attorney’s Office at Johnson’s sentencing hearing, Johnson repeatedly punched his victim in the face, threw a buckle at her head causing a laceration, forced her to the floor, and laid on top of her all night while pouring water on her face to keep her awake. Johnson’s children were present to witness this abuse.
Johnson appealed his sentence. On February 26, 2014, the Seventh Circuit Court of Appeals affirmed Johnson’s sentence, finding that Indiana’s domestic battery statute is a “violent felony.”
According to Assistant United States Attorneys MaryAnn T. Mindrum and Cynthia J. Ridgeway, who together prosecuted this case for the government and argued the government’s position on appeal, the public is now safe from Johnson, a violent armed career criminal, who will serve his fifteen year sentence in federal prison.
Hosting today’s announcement is the staff at the Julian Center, the largest domestic violence services provider and family justice center in Indiana. For more than 39 years, its mission has been to provide the services victims need to recover and build a life absent of abuse. The Julian Center provided invaluable testimony, research, and statistics at Johnson’s sentencing hearing as to dangers and risk to domestic violence victims, and broader testimony on the cycle of violence inherent in domestic battery offenses. Jennifer Reister, Director of Non-Residential Services at The Julian Center testified that “domestic violence is the number one nonfatal cause of injury to women in the United States.”
“We are grateful that our years of work with, and service to, victims of domestic violence allowed us to provide the expertise to support the Court’s finding,” said Catherine O’Connor, president and CEO of The Julian Center. “The work on this case is just one of the many ways we seek to serve victims throughout our community.”
The Marion County Prosecutor’s Office further conveyed the impact of domestic battery on Hoosier victims by providing compelling statistical evidence at the sentencing hearing regarding the prevalence of domestic battery convictions in Marion County.
Also present for the announcement is Laura Berry, Executive Director of the Indiana Coalition Against Domestic Violence, an advocacy group helping to prevent domestic violence. “The 7th Circuit Court of Appeals has just concurred with our long held belief that felony domestic battery is a crime of violence and not just an interpersonal matter,” said Berry.
Heroin and Meth Bound for Bakken Draw 70 Month SentenceRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Billings, on March 6, 2014, before U.S. District Judge Susan P. Watters, ROGER ALLEN YBARRA BERGER, a 29 year-old resident of Dickinson, North Dakota, was sentenced to a term of:
Prison: 70 months
Special Assessment: $ 100
Restitution: N/A
Supervised Release: 5 years
In an Offer of Proof filed by Assistant U.S. Attorney Brendan McCarthy, the government stated it would have proved at trial the following:
On January 10, 2013, a Montana Highway Patrol (MHP) Trooper observed a vehicle on Interstate 94 near Glendive, Montana, that failed to have visible registration tags. The Trooper approached the passenger side window of the vehicle and detected the odor of raw marijuana coming from within the suspect vehicle. The driver of the vehicle was identified as the defendant, Roger Allen Ybarra Berger. The passenger of the vehicle was identified as M.C.
The Trooper was given permission to search the vehicle by the registered owner, M.C. During the search, the Trooper discovered a backpack inside the vehicle. M.C. advised the backpack did not belong to him. Likewise, Berger also denied owning the backpack. In the backpack law enforcement found numerous items of drug paraphernalia such as tin foil, a torch, numerous small plastic baggies, and a locked box. Inside the locked box there were two bags containing powdery substances. One bag field tested positive for heroin and weighed approximately 2 ounces. The second bag field tested positive for methamphetamine and weighted approximately 1.5 ounces. Berger later admitted the backpack and the contents belonged to him.
The investigation revealed that Berger and M.C. drove from Dickinson, North Dakota, to Billings, Montana, on January 9, 2013. They stayed at a local motel in Billings, Yellowstone County, Montana. While at the motel, Berger met with his source of supply for methamphetamine and heroin - William Lawrence Barrow. Berger and M.C. had previously traveled to Billings, Montana, just before New Year's Day, 2013, to pick up more drugs from Barrow. During the previous trip in December of 2012, Berger picked up four ounces of methamphetamine and three ounces of heroin from Barrow for redistribution.
Further investigation revealed that Barrow was Berger's main drug connection out of Utah. Berger had historically distributed at least 50 grams of methamphetamine and at least 100 grams of heroin during the course of the conspiracy.
The investigation was conducted by the Montana Highway Patrol, Montana Department of Criminal Investigation, and the Drug Enforcement Administration.
Fort Thompson Woman Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, woman has been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Mary St. John, a/k/a Mary Hoisington, age 48, was indicted on March 11, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on March 13, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 19, 2014, St. John assaulted someone with a dangerous weapon.
The charge is merely an accusation and St. John is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
St. John was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Former Washington Park Street Superintendant Sentenced to Prison for Forging Village CheckRead the Press Release
Follow @SDILNewsDouglas T. Knowles, 37, of Washington Park, Illinois, was sentenced to 3 months in federal prison, followed by 6 months of home detention and three years of supervised release for the offense of uttering a forged check of the Village of Washington Park, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
In December 2012, Knowles, who was a public works/street superintendent for the Village of Washington Park, purchased and picked up a gas range from Gil Klein TV & Appliance, Inc., a/k/a Klein’s Brand Source, in Fairview Heights. Knowles presented a Village of Washington Park check purported to be signed by the Mayor of Washington Park for payment. It was later learned that Knowles forged the endorsement of the Mayor and used the gas range for his private residence.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service/Criminal Investigations as part of the Metro East Public Corruption Task Force. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Former CEO of Technology Start-Up Indicted for Wire Fraud and Money LaunderingRead the Press Release
SAN FRANCISCO – Yesterday a grand jury indicted Jonathan Edward (“Jon”) Mills, the former Chief Executive Officer of a San Francisco-based technology company, for wire fraud and money laundering, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Mills, 30, of San Francisco, founded technology company Motionloft, Inc., and served as its CEO until he was fired on or about December 1, 2013. According to the Indictment, Mills falsely told several individuals that Motionloft was going to be acquired by a well-known multinational company based in Silicon Valley, and that these individuals could invest in Motionloft and reap massive profits after the acquisition closed. However, Mills used at least a substantial portion of these investments on himself, including private jet excursions, a penthouse suite rental, vacations, and to pay off other victims. According to court documents, representatives of the purported acquiring company and Motionloft’s largest investor have both stated there was no such possible acquisition of Motionloft.
Mills was arrested on February 19, 2014, in San Francisco, and he made his initial appearance in federal court in San Francisco the following day. Mills remained in custody until on or about February 28, when a relative posted property to secure his release to a halfway house pending trial. Mills’ next court appearance is Friday, March 14, at 9:30 a.m. before the Honorable Nathanael Cousins, United States Magistrate Court Judge.
The maximum statutory penalty for each count of wire fraud, in violation of Title 18, United States Code, Section 1343, is 20 years in prison, a fine of $250,000, plus restitution. The maximum penalty for money laundering, in violation of Title 18, United States Code, Section 1957, is 10 years in prison, a $250,000 fine, plus restitution. Any sentence following conviction, however, would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Doug Sprague is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Please note that an indictment contains only allegations against an individual and, as with all defendants, Mills must be presumed innocent unless and until proven guilty.
(Mills indictment )
Former American Airlines Pilot Convicted of Production, Distribution, and Possession of Child PornographyRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Donald Edwin Gallagher, Jr. (51, St. Petersburg) guilty of two counts of production of child pornography, one count of distribution of child pornography, and one count of possession of child pornography. Gallagher faces a maximum penalty of 30 years’ imprisonment on each production count, 20 years in prison on the distribution count, and up to 10 years for the possession charge. His sentencing hearing will be scheduled for a later date.
Gallagher was arrested on a criminal complaint on July 24, 2013, and indicted on December 18, 2013.
According to evidence presented at trial, in January 2013 an undercover detective with the St. Petersburg Police Department downloaded approximately 15 files of child pornography from an Internet Protocol (IP) address that traced back to Gallagher’s residence, in St. Petersburg. Based upon the investigation into the origin of these images, the Federal Bureau of Investigation and other local agencies executed a federal search warrant at that residence. During the search, agents located and seized a laptop computer belonging to Gallagher, as well as hard drives and other digital media, on which agents located thousands of images and hundreds of videos containing child pornography. Upon further investigation and review of Gallagher’s digital media, law enforcement recognized the background in some of the pornographic images and videos as being Gallagher’s residence. Law enforcement later determined that Gallagher had produced images and videos of two minor victims engaged in sexually explicit conduct. Gallagher stored these images and videos on his various digital devices.
This case was investigated by the Federal Bureau of Investigation and members of the FBI’s Child Exploitation Task Force, including the Largo Police Department and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorneys Josephine W. Thomas and Stacie B. Harris.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Florida Couple Pleads Guilty to Mail Fraud ConspiracyRead the Press Release
BOSTON - A husband and wife from Cape Coral, Fla., pleaded guilty today to mail fraud involving the theft of more than $210,000.
Michelle Minihan, 49, and James Minihan, 51, pleaded guilty to conspiring to commit mail fraud. The Minihans who were charged in February, are scheduled for sentencing on June 18, 2014.
Michelle Minihan worked for an individual who ran a court-reporting and transcription business. Her duties included, among other things, payroll, invoicing, accounting, and processing payments to the company. She was also responsible for depositing checks from clients into the company’s bank account.In 2007, Michele and James Minihan moved to Florida, but Michelle Minihan continued to work for the company, receiving the company checks that she was supposed to deposit by mail. Beginning in August 2008, the Minihans began depositing the company’s checks into their own personal bank accounts and using the proceeds of these converted checks for their own personal use. Michelle Minihan attempted to cover up the scheme by falsifying the company’s accounting records. In total, between 2008 and 2013, they stole more than $210,000 in checks.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case is being prosecuted by Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
Federal Inmate in Ashland Convicted of Conspiring with Prison Guard to Smuggle Prohibited Items into PrisonRead the Press Release
ASHLAND –An inmate at the Federal Corrections Institute (FCI) in Ashland, KY., has been convicted by a federal jury of conspiring with a prison guard and others to smuggle prohibited items into the prison.
Today, a federal jury convicted 33-year-old Gary Musick, of Newport, Tenn., of conspiracy to introduce contraband into a correctional facility and possession of contraband. The jury reached its verdicts after approximately three and half hours of deliberation, following four and a half days of trial.
According to testimony, Musick’s co-defendant and former girlfriend, Cindy Gates, and other female associates of Musick, routinely visited the FCI and delivered prohibited items, such as tobacco, marijuana, and nude photographs, to corrections officer James Lewis. Lewis subsequently provided the items to Musick, in exchange for payment from Gates and others.
The evidence at trial established that Musick also sold the prohibited items to other inmates, in exchange for stamps. In some instances, he directed inmates to have money sent to an address outside of the institution as payment. The conspiracy lasted from December 2010 until February 2012.
Lewis and Gates previously pleaded guilty to a conspiracy charge.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and John F. Oleskowicz, Special Agent in Charge, Department of Justice, Office of the Inspector General, Chicago Field Office, jointly announced the conviction.
The investigation was conducted by the Department of Justice, Office of the Inspector General. Assistant U.S. Attorneys Edwin J. Walbourn, III and Wade T. Napier prosecuted this case on behalf of the federal government.
Musick is scheduled to appear for sentencing in June 2014. Both offenses carry a maximum of five years in prison. However, before the Court imposes a sentence it will carefully review the U.S. Sentencing Guidelines and the federal statutes governing the imposition of sentences.
Federal Court Shuts Down Georgia Tax Return PreparerRead the Press Release
A federal court in the Northern District of Georgia permanently barred Andrew R. Heath, an Acworth, Ga., area tax preparer from preparing tax returns for others, the Justice Department announced today. Heath agreed to the civil injunction order without admitting the allegations against him. The government’s complaint in the injunction suit was brought against both Andrew Heath and his brother, Larry J. Heath, who previously agreed to a civil injunction order.
The government complaint alleged that Andrew Heath, who operated Excellent Tax Service, repeatedly prepared federal tax returns that unlawfully understated customers’ federal tax liabilities. The suit alleged that Andrew Heath concocted bogus losses, expenses, education credits, business expenses and charitable contributions, which he falsely reported on his customers’ federal income tax returns.
Return preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2013 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Andrew R. Heath, etc.
Complaint for Permanent Injunction and Other Relief
Stipulated Final Judgment of Permanent Injunction and Order Against Defendant Andrew R. HeathFci Danbury Employee Charged with Participating in Inmate Early Release Bribery SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Ronald G. Gardella, Special Agent-in-Charge, Department of Justice Office of the Inspector General, New York Field Office, announced that KISHA PERKINS, a case manager at the Federal Correctional Institution in Danbury (FCI Danbury), was arrested today on a federal criminal complaint charging her with aiding and abetting a scheme to solicit and collect cash bribes from FCI Danbury inmates in exchange for a recommendation that inmates be released early to “halfway houses.”
PERKINS, 42, of Waterbury, was arrested this morning by FBI special agents at her home. She appeared this afternoon before U.S. Magistrate Judge Joan G. Margolis in New Haven and was released on a $100,000 bond.
“There is no tolerance for corrupt employees within the ranks of the Justice Department,” stated U.S. Attorney Daly. “The allegations contained in this criminal complaint are serious and disturbing. The U.S. Attorney’s Office and our federal investigative partners are committed to rooting out corruption at all levels of Government.”
“Plainly and simply, the FBI has zero tolerance for corruption of any kind, at any level of government,” stated FBI Special Agent in Charge Ferrick. “The allegations in the complaint are clearly very serious crimes. And the resulting law enforcement response to committing those crimes should be equally clear. If you put your position of trust with the government up for sale, you will be investigated and prosecuted to the fullest extent of the law.”
As alleged in the criminal complaint, in June 2013, PERKINS approached another FCI Danbury employee about an opportunity to participate in a scheme to solicit a cash bribe from an inmate at FCI Danbury in exchange for the inmate’s early release to a halfway house. At that time, PERKINS held the job title of “Unit Counselor” at FCI Danbury and did not have administrative authority to recommend inmates for early release. PERKINS explained that the inmate and the inmate’s husband were willing to pay $20,000, and that PERKINS’ co-worker, who would receive half of the money, was needed to complete the scheme because the co-worker had the administrative ability to recommend inmates for early release.
PERKINS’ co-worker declined to participate in the scheme, reported the incident to law enforcement and agreed to cooperate in the investigation, which included the use of numerous consensually recorded conversations.
In July 2013, PERKINS’ co-worker told PERKINS that he/she had changed his/her mind and wanted to participate in the scheme. It is alleged that PERKINS informed her co-worker that a scheme involving the inmate who had been previously identified was no longer feasible.
As the investigation continued, in February 2014, PERKINS’ co-worker identified a second inmate as a possible candidate for the bribe scheme. Is it alleged that PERKINS agreed to participate and, after extensive planning, on March 8, 2014, PERKINS and her co-worker traveled to a commuter lot off of Exit 28 on Interstate 84 to pick up a partial bribe payment of $5,000 in cash in a fast food bag that, as PERKINS believed, was to be dropped off by an acquaintance of the inmate.
The complaint charges PERKINS with aiding and abetting in a bribery scheme of a public official, an offense that carries a maximum term of imprisonment of 15 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Department of Justice Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Susan Wines.
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[email protected]Dublin Man Sentenced to Twenty One Months Imprisonment for Bank FraudRead the Press Release
OAKLAND – Saleem M. Khan was sentenced yesterday to twenty one months in prison and ordered to pay a $60,000 fine for bank fraud and making false statements to a financial institution, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Khan pleaded guilty on July 25, 2013, to submitting false documents to a financial institution in order to obtain a settlement of his home equity line of credit (“HELOC”). Specifically, Khan admitted that he took out a $344,000 HELOC on his home in approximately September 2005. That HELOC was owned by E-Trade Bank, which retained PNC Bank to service the loan. By 2010, Khan had stopped making payments on the HELOC. In January 2011, he provided a so-called “hardship package” to PNC Bank to demonstrate his inability to pay the loan. That hardship package contained false statements regarding Khan’s employment history, income, and assets, and included a forged pay stub that underreported his monthly income by approximately $2000. Moreover, Khan failed to disclose to PNC Bank the significant stock options trading gains of approximately $800,000 that that he had made in the previous year. Based on Khan’s misrepresentations, PNC Bank and E-Trade Bank ultimately agreed to settle the outstanding $344,000 HELOC balance for only $45,000, and thereafter the banks took action to re-convey to Khan the lien that they held on Khan’s property.
Khan, 49, of Dublin, was indicted by a federal grand jury on December 6, 2012. He was charged with one count of bank fraud and one count of making false statements to a financial institution.
The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, United States District Court Judge, following a guilty plea on one count in violation of Title 18, United States Code, Section 1344, and one count in violation of Title 18, United States Code, Section 1014. Judge Gonzalez Rogers also sentenced the defendant to a three-year period of supervised release and a $60,000 fine. The Court set a further hearing for May 29, 2014, for determination of a restitution amount to be paid to the bank victim in this case. The defendant will begin serving the sentence on June 23, 2014.
Kyle F. Waldinger is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of an investigation by the FBI.
(Khan indictment )
District Man Sentenced to 60 Years in Prison for Sexually Assaulting Four Women in Series of Attacks Committed at Knifepoint-Defendant Lured Victims into His SUV, Then Raped Them-Read the Press Release
WASHINGTON - Barrington Bennett, 36, of Washington, D.C., was sentenced today to 60 years in prison for sexually assaulting four victims at knifepoint between December 2011 and August 2012, U.S. Attorney Ronald C. Machen Jr. announced.
Bennett was found guilty by a jury in October 2013, following a trial in the Superior Court of the District of Columbia, of four counts of first-degree sexual abuse while armed with aggravating circumstances, four counts of kidnapping while armed, and three counts of armed robbery. He was sentenced by the Honorable John Ramsey Johnson.
According to the government=s evidence, Bennett lured the victims into his sport utility vehicle in attacks that took place on Dec. 16, 2011; Feb. 18, 2012; July 28, 2012, and Aug. 23, 2012.
One victim joined Bennett after the offer of a ride home. The others were prostitutes who believed they would perform sex for money. Bennett had folded down the middle row of seats in the SUV and covered it with a blanket. When victims got into the SUV, from various locations in Northeast and Northwest Washington, Bennett drove them to places in Northeast Washington. He pulled out a folding knife, held it to their throats, and raped them at knifepoint.
Bennett also robbed three of the victims of cell phones and money. He cut the fourth victim on her jaw and head, and she wiped her blood on the blanket. When she finally escaped the SUV, she saw the license plate and reported the tag number immediately.
Detectives with the Metropolitan Police Department located the SUV within an hour, impounded it, and searched it after obtaining a warrant. Inside the SUV, police discovered a folding knife that contained DNA consistent with the fourth victim and the defendant. Police also found a blanket that contained the fourth victim’s blood, along with the DNA of the defendant and the first victim. Finally, the second victim had received a sexual assault kit which contained Bennett’s DNA.
In announcing the sentence, U.S. Attorney Machen commended the work of detectives from the Metropolitan Police Department=s Sexual Assault Unit, the Fifth District, and the Forensic Science Division. He also commended the work of the Consolidated Forensic Sciences Division. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson; Paralegal Specialists Jason Manuel and Tiffany Jones, and Victim-Witness Specialists David Foster and Katina Adams-Washington. He particularly commended the work of Claudia Gutierrez, Joe Calvarese, Leif Hickling and the entire Litigation Support Staff for their work on the case. Lastly, Mr. Machen thanked Assistant U.S. Attorney Amy Zubrensky, who investigated, indicted and tried the case, Assistant U.S. Attorney Jodi Lazarus, who co-tried the case, and former Assistant U.S. Attorney Erin Andrews, who also investigated the case.
14-066District Man Sentenced to 20 Years in Prison for Sexually Abusing Nine-Year-Old Boy-Defendant Repeatedly Abused Child over Six-Month Period-Read the Press Release
WASHINGTON - A 49-year-old man, of Washington, D.C., was sentenced today to 20 years in prison for sexually abusing a nine-year-old male relative, U.S. Attorney Ronald C. Machen Jr. announced.
The man, who is not identified here to protect the privacy of the victim and his family, was found guilty by a jury in December 2013, of first-degree child sexual abuse with aggravating circumstances. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Russell F. Canan. Upon completion of his prison term, the man will be placed on five years of supervised release and must register as a sex offender for the rest of his life.
According to the government’s evidence, the defendant repeatedly sexually abused the victim in 2009 during a six-month period in which he and the victim lived together in Laurel, Md. One incident took place in Washington D.C., at the defendant’s place of employment.
In announcing the sentence, U.S. Attorney Machen commended the work of the agencies that investigated the case, including the Laurel, Md., Police Department and the Metropolitan Police Department (MPD)’s Youth Investigations Division. He also expressed appreciation for the assistance provided by the U.S. Marshals Service, the FBI, and the Department of Justice, as well as the Children’s Advocacy Center, which provided critical services and treatment to the victim. In addition, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Child Forensic Interview Specialist Karen Giannakoulias; Paralegal Specialist Donhue Griffith; the Litigation Support Unit, including Litigation Technology Specialists Paul Howell and Joseph Calvarese, and the Victim Witness Assistance Unit, including Victim/Witness Advocates Melissa Milam and Elsa Resendiz. Finally, he praised the work of Criminal Investigator Mark Crawford and Assistant U.S. Attorney Lindsay Suttenberg, who indicted and prosecuted the case.
14-065Denver Man Sentenced to 20 Years in Federal Prison for Being A Felon in Possession of 10 Rounds of AmmunitionRead the Press Release
DENVER – Gregory Lozado, age 34, of Denver, Colorado, was sentenced earlier this week by U.S. District Court Judge Philip A. Brimmer to serve 235 months (just under 20 years) for being a felon in possession of 10 rounds of ammunition, U.S. Attorney John Walsh and Denver Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Luke Franey announced. When pronouncing the sentence Judge Brimmer ruled that Lozado was an Armed Career Criminal based on his having three prior felony convictions for crimes of violence. After serving his sentence, Lozado was ordered to serve 5 years on supervised release. The defendant appeared at the sentencing hearing in custody, and was remanded at its conclusion.
Lozado was indicted by a federal grand jury on April 22, 2013. He went to trial, which started on November 18, 2013 and concluded on November 20, 2013 with the jury returning a verdict of guilty to the sole count of the indictment, which charged him with being a felon in possession of ammunition. He was sentenced on March 12, 2014.
According to the Government’s Sentencing Statement, which was filed on December 12, 2013; on March 21, 2013, at approximately 3:30 p.m., two uniformed Denver Police Officers, patrolling in a marked unit, observed a Chevrolet Impala with a badly cracked windshield and an expired temporary Texas license tag. The officers initiated a traffic stop of the Impala. The driver that vehicle pulled over, and then immediately jumped from the vehicle and fled on foot. Denver officers pursued the individual both on foot and by patrol car. As they were chasing the individual, who was later identified as Gregory Lozado, they noticed he was running holding a black handgun. At one point, when officers thought they had him cornered, they ordered he drop the gun. Lozado did not comply with the order. Instantly after a door near Lozado opened, and he continued fleeing on foot. Officers set up a perimeter around the building. They eventually convinced Lozado to surrender.
An inventory search of the Chevrolet Impala being driven by Lozado turned up a number of items, including a black zipper bag with ten rounds of live 9mm Winchester ammunition. Officers also recovered a spent (fired) .38 caliber shell casing. The gun officers saw in Lozado’s hand was never recovered.
Lozado had multiple prior convictions, which for sentencing purposes qualified him for being an Armed Career Criminal. The prior convictions include: robbery conviction in Adams County; theft from a person conviction in Denver; second degree burglary of a building conviction in Denver; and a conviction for felony menacing in Denver. In addition, Lozado was on parole for the felony menacing conviction.
“The old saying ‘Where’s there’s smoke, there’s fire was never truer than in this case,” said U.S. Attorney John Walsh. “Defendant’s possession of multiple bullets and a spent cartridge, combined with his three prior violent felony convictions, demonstrates that he was a danger to the public and fully warranted this severe penalty.”
“The collaboration between the Denver Police Department and our federal law enforcement partners goes a long way to keeping our community safe,” said Denver Police Chief Robert C. White. “This arrest and conviction is a good example of that collaboration.”
“ATF makes it a priority to identify repeat offenders who continue to victimize our communities through the illegal use of crime guns,” said Denver ATF Special Agent in Charge, Luke Franey. “This sentence sends a clear message that career criminals who continue to disregard the law will be held accountable.”
This case was investigated by the Denver Police Department and the ATF.
Lozado was prosecuted by Assistant U.S. Attorneys David Conner and Anna Edgar.
Chicagoland Man Sentenced to More Than 15 Years in Prison for Orchestrating the Major Marijuana Distribution from SacramentoRead the Press Release
SACRAMENTO, Calif. — William Brock, 37, of Glen Ellyn, Ill., was sentenced today to 15 years and eight months in prison and fined $250,000 for conspiring to distribute at least 100 kilograms of marijuana and possession with intent to distribute at least 100 kilograms of marijuana, United States Attorney Benjamin B. Wagner announced.
On November 6, 2013, Brock was convicted by a jury in Sacramento after a 2-and-a-half-day trial before Chief United States District Judge Morrison C. England Jr. At the sentencing hearing today, Judge England stated that this was the largest and most advanced and sophisticated marijuana distribution scheme that he had seen in his 12 years on the federal bench and six years as a California state court judge. Judge England also referred to the evidence against Brock as “overwhelming.”
According to testimony presented at trial, Brock, who is from a suburb of Chicago, was the target of an interstate marijuana distribution investigation conducted by the Will County Sheriff’s Department in Illinois, and which included a warehouse that Brock rented in North Highlands, Calif. As part of that investigation, Will County Sheriff’s deputies came to California in April 2012 to install a GPS tracking device on a vehicle believed to be used by Brock while he was in California. Brock discovered the GPS device after it was installed, apparently using a lookout, and switched vehicles, arriving at his warehouse unit in a minivan owned and driven by William Calvert. In Calvert’s van police found more than 200 pounds of processed marijuana in double vacuum-sealed bags that were contained in 45 cardboard boxes. Police then searched Brock’s warehouse unit, in which they found similar boxes containing more than 300 pounds of processed marijuana, also packed in double-vacuum-sealed bags.
At the same time as the searches were being conducted in California, Will County Sheriff’s deputies searched Brock’s storage unit and his residence in Illinois. They found processed marijuana, more than $150,000 in cash, and over $1 million in silver bullion and gold and silver coins.
This case was the product of an investigation by the Will County Sheriff’s Office, the Sacramento County Sheriff’s Department, the City of Folsom Police Department, and the Drug Enforcement Administration. Assistant United States Attorneys Todd Pickles and Jeffrey Spivak prosecuted the case.
Carroll County Sex Offender Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Scott Wade Markle, age 52, of Westminster, Maryland, today to 10 years in prison, followed by lifetime supervised release for possession of child pornography. In 2005, Markle was convicted of the same crime and was required to register as a sex offender. Judge Blake ordered that upon his release from prison, Markle must continue to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Carroll County Sheriff Kenneth Tregoning.
According to Markle=s plea agreement, on February 11, 2013, an individual contacted the Carroll County Sheriff’s Office after finding a black tote bag at the bottom of his driveway. The individual had opened the bag in an attempt to identify the owner and had seen printed images of what he believed to be child pornography. Sheriff’s deputies recovered the bag which contained a student ID in Markle’s name, recent mail addressed to Markle and a folder with Markle’s name and address on the front which contained approximately 100 printed images of child pornography, including children under the age of 12 engaged in sexually explicit conduct.
A search warrant was executed the next day at Markle’s residence and law enforcement seized a digital camera, cellular telephone and two laptop computers. Markle was interviewed and advised investigators that he had printed the child pornography years ago after he was released from prison on the 2005 conviction. He used the camera to take pictures of the images and upload them to his computer, since he didn’t have internet access at his residence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Maryland State Police and the Carroll County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Calera Man Pleads Guilty to Embezzlement by Bank OfficerRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DANIEL JAMES ABBOTT, age 32, of Calera, Oklahoma, pled guilty to an Information charging him with Embezzlement By Bank Officer Or Employee, in violation of Title 18, United States Code, Section 656.
The charge arose from an investigation by the United States Secret Service.
The Information alleged that from on or about October 26, 2011 to on or about September 18, 2013, in the Eastern District of Oklahoma, the defendant, being an officer and employee of the First United Bank and Trust, Durant, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud First United Bank and Trust, willfully misapplied and embezzled the moneys, funds and assets belonging to said bank and entrusted to the custody and care of the defendant as an officer and employee in an amount exceeding $1,000.00.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion. The defendant remains on bond pending sentencing.
The statutory range of punishment is not more than 3 years imprisonment, followed by 3 years of supervised release and a possible fine of up to $1,000,000.00.
Assistant United States Attorney Kyle Waters represented the United States.
Cahokia Man Sentenced for Robbery of Chili's Bar and GrillRead the Press Release
Follow @SDILNewsDaniel W. Amerson, 26, of Cahokia, Illinois, was sentenced to 57 months in federal prison, to be followed by a three year term of supervised release, and ordered to pay $1,883.30 in restitution, following his plea of guilty to an indictment charging Interference with Commerce by Violence, a violation of the Hobbs Act, in connection with the robbery of Chili’s Bar and Grill in Fairview Heights on August 1, 2013, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois announced today. Amerson has been in custody since his arrest on August 1, 2013.
“Creative charging decisions and lengthy federal sentences are only a few of the tools that I will continue to use in order to combat the rash of armed robberies that has been plaguing the metro east.” said United States Attorney Wigginton. “Part of the message is to let persons know that their actions may result in a harsh federal prison sentence, far from their friends and families. Think before you act. Simply, don’t do the crime.”
According to documents filed in court, on August 1, 2013, at approximately 9:24 p.m., Amerson, and his co-defendants entered Chili’s [Restaurant in Fairview Heights, Illinois] to commit a robbery. Amerson and one of his co-defendants were masked and armed with BB guns which resembled genuine semi-automatic firearms. The third co-defendant was unarmed and unmasked. In total, over twenty customers and employees were present in the restaurant when the defendants entered a side door to commit the robbery. The manager was ordered at gunpoint to open the safe, which contained a cash drawer and box. Amerson and a co-defendant maintained watch over customers and employees (some of whom were ordered to the back of the restaurant and the ground) while monies were being taken. Some customers fled the restaurant during the robbery. Having obtained monies from the restaurant, the defendants departed in their getaway car. An alert customer was able to record the Missouri license plate number of the getaway car, and to provide it to police during a 911 call.
Police officers quickly located the getaway car on westbound Interstate 64, headed to Missouri, and activated their lights and sirens near the foot of the MLK Bridge. The defendants did not obey the directive to stop the car, passed another motorist by driving on the shoulder, and drove at a high rate of speed (60 miles per hour in a 45 mile per hour zone) into the City of St. Louis until encountering a dead end.
The defendants attempted to flee the police on foot, but were quickly caught. The getaway car was found to contain masks, two Daisy Powerline Model 340 BB guns, a cash register drawer and a cash box. In total, approximately $800 was recovered from the car and the path of flight.
This case was investigated by the Fairview Heights Police Department and prosecuted by Assistant United States Attorney Suzanne M. Garrison.
Buffalo Women Plead Guilty to Drug ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Barbara Moran, 53, and her sister-in-law, Mary Moran, 50, both of Buffalo, N.Y., pleaded guilty to conspiracy to possess with intent to distribute and to distribute fentanyl, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, a $1,000,000 fine or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that between September, 2012 and May, 2013, Mary Moran sold her prescription fentanyl patches to Barbara Moran, who then sold those fentanyl patches and other controlled substances, from her residence at 93 Pulaski Street in Buffalo. Some of those sales were made to law enforcement officers acting in an undercover capacity.
The plea is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division and the Cheektowaga Police Department, under the direction of Chief David Zach.
Barbara Moran will be sentenced on June 16, 2014 at 12:30 p.m. before Judge Arcara. Mary Moran will be sentenced on July 2, 2014 at 12:30 p.m., also before Judge Arcara.Brooklyn, N.Y., Woman Sentenced to More Than 21 Years in Prison for Shipment of More Than $2.5 Million Worth of Stolen Luxury Vehicles to AfricaRead the Press Release
CAMDEN, N.J. – A Brooklyn, N.Y., woman was sentenced today to 262 months in prison for her role as the leader of a ring responsible for shipping dozens of stolen and carjacked luxury cars and SUVs worth more than $2.5 million from New Jersey to Africa, U.S. Attorney Paul J. Fishman announced.
Hope K. Kantete, 44, was convicted on June 28, 2013, of 10 counts of transportation of stolen vehicles in interstate or foreign commerce and a single count of conspiracy to transport stolen vehicles in interstate or foreign commerce. Kantete was convicted after a three-week trial before U.S. District Judge Robert J. Kugler, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence presented at trial:
The stolen car exportation ring was investigated by a multi-agency task force led by the U.S. Immigration and Customs Enforcement/Homeland Security Investigations (HSI). The investigation revealed that Kantete employed other individuals who were responsible for purchasing stolen and carjacked vehicles from thieves operating in northern New Jersey and New York. Kantete then had individuals “re-tag,” or place new vehicle identification numbers, on the stolen cars and create fraudulent title documents so that the cars could be shipped out of the country. After the documents were created, Kantete arranged to have the cars loaded onto shipping containers and sent to ports in West Africa. The cars could be re-sold in West Africa for at least twice their retail value in the United States.
In addition to the prison term, Judge Kugler sentenced Kantete to three years of supervised release and ordered her to pay restitution of $346,937, based on a loss estimated at $2.5 million to $7 million.
U.S. Attorney Fishman credited special agents of HSI, under the leadership of Executive Associate Director James Dinkins and Special Agent in Charge Andrew M. McLees; and the N.J. State Police, under the direction of Superintendent Col. Rick Fuentes, for the investigation leading to today’s sentencing. He also thanked U.S. Customs and Border Protection; the Waterfront Commission of New York Harbor; Acting Essex County Prosecutor Carolyn Murray, Middlesex County Prosecutor Andrew Carey, Acting Hudson County ProsecutorGaetano T. Gregory, and Acting Union County Prosecutor Grace H. Park, the Essex and Hudson County Sheriff’s Departments, the Newark Police Department, the U.S. Coast Guard Investigative Service and the Port Authority of New York and New Jersey for their roles.
The government is represented by Assistant U.S. Attorney José R. Almonte and James M. Donnelly of the U.S. Attorney’s Office Criminal Division in Newark.14-088
Defense counsel: Brian J. Neary Esq., Hackensack, N.J.